Endowment.... surrender or keep

Dick_here

If you are serious about wanting to reduce your LTV then surrendering the endowment and throwing the lump sum at the mortgage, and also overpaying the mortgage each month by the amount of the endowment you wouldn't be paying seems the obvious approach to me.

dimbo61

You are paying 5.54% on your mortgage debt at the moment ( and interest rates are low!)

dimbo61

Cashing in the endowment and using that money to make a lump sum payment off the mortgage balance means your LTV goes from 90% down to 85/80% and you can then get better deals.
Now fixing for 3/5 years and reducing the term means you would be paying the same amount each month but clearing the mortgage quicker in case rates are 8/9/10% in 3/5 years!!!!
At the same time using the endowment premium to either overpay or save into the offset account.
You still need life assurance but take level term with one of the online companies.
Only my views good luck in your decision

guinness79

Thanks everyone for all ur responses....

We have decided (after advice from IFA that we have used in the past) and comments from everyone on here....

to surrender endowment... (or sell... IFA has put us in contact with a company who may offer us more than surrender)

This means we can reduce our LTV and get a better deal.... we are not really struggling to pay current mortgage of £1150 (just a little fed up that so much of it is interest!) so we will over pay the extra and some rought calculations means we can shave 5 ish yrs of our mortgage!

Lovely Jubbly!

jackomdj

it is worth contacting a few companies who buy policies & play them off each other. We were thinking about cashing in OH's a few years ago & they upped the price by about £500 with us doing this. In the end we decided to keep it.

We surrendered mine, however nobody was interested in buying it (because of the type) & just cashed it in with our provider.

guinness79

thanks jackomdj...... IFA also suggested that so have sent off an enquiry form to his recommended company.... I await their results

Anything will be a bonus!